HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/04/2021 - SECOND READING OF ORDINANCE NO. 097, 2021, ESTABLI Agenda Item 7
Item # 7 Page 1
AGENDA ITEM SUMMARY August 4, 2021
City Council
STAFF
Clay Frickey, Redevelopment Program Manager
John Duval, Legal
SUBJECT
Second Reading of Ordinance No. 097, 2021, Establishing the Fort Collins Tourism Improvement District.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on July 20, 2021, establishes the Fort Collins Tourism
Improvement District (District). The District’s purpose is , “…to operate as a [tourism improvement district]
charging fees to the lodging businesses included within the District to fund and provide specific tourism
services and improvements for the benefit of the feepayers’ lodging businesses. These services and
improvements will be primarily used to increase room night sales for t hose lodging businesses.” Council will
hold a public hearing at second reading for the District on August 4, 2021, if this Ordinance passes on first
reading. The petition submitted for establishing the District meets the requirements outlined in Article V of
Chapter 22 of the City Code.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, July 20, 2021 (w/o attachments) (PDF)
2. Ordinance No. 097, 2021 (PDF)
Agenda Item 15
Item # 15 Page 1
AGENDA ITEM SUMMARY July 20, 2021
City Council
STAFF
Clay Frickey, Redevelopment Program Manager
John Duval, Legal
SUBJECT
First Reading of Ordinance No. 097, 2021, Establishing the Fort Collins Tourism Improvement District.
EXECUTIVE SUMMARY
The purpose of this item is for Council to consider establishing the Fort Collins Tourism Improvement District
(District). The District’s purpose is , “…to operate as a [tourism improvement district] charging fees to the lodging
businesses included within the District to fund and provide specific tourism services and improvements for the
benefit of the feepayers’ lodging businesses. These services and improvements will be primarily used to
increase room night sales for those lodging businesses.” Council will hold a public hearing at second reading for
the District on August 4, 2021, if this Ordinance passes on first reading. The petition submitted for establishing
the District meets the requirements outlined in Article V of Chapter 22 of the City Code.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
In 2019, the City and Visit Fort Collins (VFC) jointly funded an effort to create a Tourism and Destination Master
Plan. Work began on the Plan and came to a halt in April 2020 due to the COVID-19 pandemic. During the
engagement, stakeholders noted additional revenue sources would be beneficial to hoteliers. From this
discussion came the idea to create a “Tourism Improvement District” (TID) in Fort Collins to supplement hotel
revenues. An additional revenue stream for hotels became more important during the COVID-19 pandemic. The
VFC Board of Directors approved moving forward with a feasibility study to determine if a TID was an option for
Fort Collins.
VFC hired Civitas to conduct the TID Feasibility Study. The Feasibility Study found that Colorado law permits
TIDs and that Fort Collins may create its own local ordinance permitting the formation of business-based TIDs.
The VFC Board of Directors considered and approved a formal proposal to move forward with the formation of
business-based TIDs. This led to Civitas and VFC approaching the City to begin formal exploration of having
Council adopt a local ordinance to allow for the formation of TIDs in Fort Collins. Civitas and VFC presented an
update on the Tourism and Destination Master Plan and the idea of allowing for the formation of TIDs at Council’s
work session on February 23, 2021. Council unanimously supported further exploration of the adoption of a local
ordinance permitting business- based TIDs.
On April 20, 2021, Council enacted a new Article V in City Code Chapter 22 (TID Ordinance) to permit the
establishment of TIDs. This new article permits the formation of a TID based on type of business. This differs
from a typical Business Improvement District (BID) where businesses form a district based off a shared
geography. A TID may also overlap with other improvement districts unlike a BID.
ATTACHMENT 1
Agenda Item 15
Item # 15 Page 2
PETITION PROCESS
The TID Ordinance outlines the requirements to form a TID. To form a TID, the proponents for the TID must file
a petition the City Clerk. This petition must contain several elements as outlined in the TID Ordinance. The
petition submitted by VFC and the other proponents meets the requirements of Article V by:
1. Describing the boundaries of the District;
2. Listing the total number of lodging businesses to be included in the District along with their address, tax
account, and lodging license numbers;
3. Describing the lodging businesses initially included in the District and the kind of future lodging businesses
to be included in the district;
4. General describing the tourism improvements and services the District intends to fund and provide;
5. Describing the proposed fee to be levied by the District and how these fees will be collected and disbursed;
6. Describing the intended uses of revenues derived from the District’s fee;
7. Proposing the composition of the District’s board of directors and the initial directors proposed for
appointment by the Council;
8. Naming the three persons that represent the petitioners on matters related to the petition and initial plan;
and
9. The initial plan of the District.
The petition filed with the City Clerk must also be signed by authorized managers representing the lodging
businesses having at least fifty percent (50%) of the total rooms to be included in the TID. The petition submitted
for the District has been signed by the authorized managers representing 78.6% of the total rooms to be included
in the District.
As required by the TID Ordinance, the City Manager has reviewed the petition and determined it complies with
all applicable requirements of the TID Ordinance.
As also required by the TID Ordinance, the City Clerk has provided written notice of Council’s public hearing for
this Ordinance that will be held on second reading on August 4, 2021. This notice was published on June 30,
2021 in the Coloradoan, mailed on June 30, 2021 to all the lodging businesses proposed to be included in the
District, and posted on the City’s website on June 30, 2021.
INITIAL PLAN OVERVIEW
The District’s initial plan (Initial Plan) included with the petition contains the elements required by the TID
Ordinance. What follows is a summary of various elements of the Initial Plan.
Purpose of the District Visit Fort Collins (VFC) and certain Fort Collins lodging businesses propose the
District. Its purpose is to operate as a TID charging fees to the lodging businesses included within the District
to fund and provide specific tourism services and improvements for the benefit of the feepayers’ lodging
businesses. The District will use these services and improvements to increase room night sales for those
lodging businesses.
District Boundaries The District proposes a boundary coterminous with City limits. This means that as new
hotels annex into the City, they also join the District once the Financial Officer of the City issues the hotel a
lodging license.
Initial Term of District The District will have an initial term of ten years and four months beginning on
September 1, 2021 and ending on December 31, 2031. This will allow for the lodging businesses within the
District to evaluate the District’s effectiveness at the end of the initial term. If the District is deemed
successful, the District’s board of directors (Board) can then request the Council to renew the District by
ordinance to continue in existence after the initial term expires. If the District is not considered to be
successful and the District is not renewed by Council, the District will be deemed dissolved at the end of the
initial term.
Agenda Item 15
Item # 15 Page 3
Promotional Plan The District will fund the following services and improvements developed and prioritized
by the lodging businesses proposing the establishment of the District.
o Sales, Marketing, and Communications: A sales, marketing, and communications program will promote
assessed lodging businesses as tourist, meeting, and event destinations. The sales, marketing, and
communications program will have a central theme of promoting the destination as a desirable place for
overnight visits.
o Destination Development: Destination development projects will be designed to improve the visitor
experience to increase overnight visitation at assessed lodging businesses. As the total number of rooms
sold and room prices increase over time, the amount of available funds for projects will increase. Working
collaboratively with the City, the District Board will develop specific funding criteria. The City and VFC
staff shall have equal input to make recommendations for final project approval.
o Administration and Operations: The administration and operations portion of the budget shall be utilized
for administrative staffing costs, office costs, advocacy, and other general administrative costs such as
insurance, legal, and accounting fees.
In the first year of the District’s operations, the District proposes investing resources to undertake the
following programs and goals:
1. Support sales development opportunities, which may include hiring a salesperson, prospecting tools or
specific marketing activities/programs designed to bring business to Fort Collins;
2. Determine bid incentive funding levels and direction for enhanced sales activities; and
3. Explore additional advertising, promotional or public relations options and if appropriate, the course of
action for investing.
Financial Plan The District will assess a fee that will be 3% of a lodging business’s “lodging price” as this
term is defined in City Code Section 25-241. However, the fee will not be collected on those transactions
that are exempt from the City’s lodging tax as provided in City Code Section 25-243. Fee revenue will only
be used to fund destination sales, marketing, communication, and destination development programs, and
related administration.
The District proposes to collect the fee by entering into an intergovernmental agreement with the City under
which the City would collect the fee in the same manner that it collects its lodging tax under its Lodging Tax
Ordinance. Under such agreement, the City would be responsible for collecting the fee (including any
delinquencies, penalties and interest) from each assessed lodging business within the District and the City
would remit such fees to the District no later than the end of the month following the month the fees were
collected by the City. This intergovernmental agreement is proposed to be presented to Council for
consideration and resolution approval at the August 4, 2021, second reading of this Ordinance.
The District proposes the following budget for its Initial Plan. The District would retain $36,000 in reserves by the
end of 2022.
Budget Category August 2021 - December 2021 January 2022 - December 2022
Revenue $400,000 $800,000
Administrative and General
Expense
$80,000 $160,000
Sales, Marketing and
Communications
$240,000 $480,000
Destination Development $60,000 $120,000
Reserves $12,000 $24,000
City Collection Fee $8,000 $16,000
Total Expenses $400,000 $800,000
Agenda Item 15
Item # 15 Page 4
District Governance The Initial Plan proposes a five-member Board along with a series of qualifications
for potential Board members. These qualifications for Board members are:
1. Three directors must be affiliated with a large, full-service lodging business.
2. One director must be affiliated with a small, limited-service lodging business.
3. One director must be affiliated with a boutique or specialty lodging business.
The Initial Plan proposes Council’s appointment of the initial Board members with staggered terms. The term of
each Board member starts on September 1, 2021.
Board Member Affiliation Rationale for Inclusion on
Board
Initial Term:
1, 2, and 3 years
Daniel Benton Fort Collins Hilton Full-service 1 year
Danielle Lowry Hampton Inn Limited-service 2 years
Dragan Andrejic The Elizabeth Full-service 2 years
George Prine The Armstrong Boutique/Specialty 3 years
Sandra Fredrickson Fort Collins Marriott Full-service 1 year
DISTRICT FORMATION PROCESS
Key dates related to the formation of the District are outlined as follows:
June 30, 2021 Published notice of August 4th Public Hearing in Coloradoan
July 14, 2021 Petition submitted to City Clerk
July 20, 2021 First Reading of establishment ordinance
August 4, 2021 Second Reading and Public Hearing for District establishment ordinance
PUBLIC OUTREACH
The VFC has conducted significant outreach with the lodging businesses proposed to be included in the District.
ATTACHMENTS
1. District's Petition (PDF)
2. Signed Petitions for Approval (PDF)
3. Hotel Check List and Room Count (PDF)
4. Powerpoint Presentation (PDF)
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ORDINANCE NO. 097, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ESTABLISHING THE FORT COLLINS TOURISM IMPROVEMENT DISTRICT
WHEREAS, the City Clerk has received a petition for the establishment (the “Petition”) of
the Fort Collins Tourism Improvement District (the “District”) within the boundaries of the City
of Fort Collins (the “City”); and
WHEREAS, based upon the Petition and other information and evidence presented to the
City Council at a noticed public hearing on the Petition, the City Council finds and determines that
the Petition has been presented to the City Clerk in conformity with Article V of Chapter 22 of the
City Code, which Article authorizes the establishment of tourism improvement districts (the “TID
Ordinance”); and
WHEREAS, all words and terms capitalized in this O rdinance shall have the meanings
set forth in the TID Ordinance except as otherwise provided in this Ordinance; and
WHEREAS, the City Council further finds and determines that the signatures on the
Petition are genuine and the signatures of the parties thereon are those of an Authorized Manager
authorized to sign for an entity operating a Lodging Business, and such signatures represent 78.6
percent (78.6%) of the total Rooms to be included in the District, thus exceeding the fifty percent
(50%) minimum Room-requirement for the establishment of a tourism improvement district under
the TID Ordinance; and
WHEREAS, as required by Section 22-158 of the TID Ordinance, the Petition sets forth,
among other things:
(a) A description of the District’s proposed boundaries;
(b) A listing of all the initial Lodging Businesses to be included within the District,
their respective street addresses, and their respective tax account and lodging license numbers
maintained with the City;
(c) A description of the kinds of Lodging Businesses initially included in the District
and the kinds of future Lodging Businesses to be included in the District as provided in Section
22-160 of the TID Ordinance;
(d) A general description of the types of Tourism Services and Tourism Improvements
to be provided by the District;
(e) A description of the fee the District will levy on the Lodging Businesses in the
District, the proposed method by which it will be collected and disbursed, and the intended uses
of the fee revenue;
(f) The proposed composition of the District's Board, including the number of
Directors to be appointed;
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(g) A copy of the Initial Plan containing the information specified in Section 22-158 of
the TID Ordinance;
(h) The names of three persons who represent the petitioners on matters relating to the
Petition and Initial Plan; and
WHEREAS, as required by Section 22-161 of the TID Ordinance, the City Manager has
determined that the Petition complies with all applicable requirements of the TID Ordinance and
has forwarded the Petition to the City Council for its consideration at a public hearing; and
WHEREAS, as also required by Section 22-161, the City Clerk has given notice of the
public hearing by publishing a notice of it at least 30-days before the hearing, specifically the
hearing on Second Reading, in the Fort Collins Coloradoan, mailing the notice by first class mail
to all the Lodging Businesses proposed to be included in the District, and posting the notice on the
City’s website; and
WHEREAS, City Council has determined that the types of Tourism Services and
Tourism Improvements proposed to be provided by the District satisfy the public purposes
identified in Section 22-150 of the TID Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. Adoption of Recitals. That the City Council hereby makes and adopts the
determinations and findings contained in the recitals set forth above.
Section 2. Findings. That following a duly noticed and conducted public hearing, as
described below, and upon consideration of the evidence presented at the hearing and a
recommendation from City staff that this Ordinance be enacted to establish the District, the
Council further finds and determines:
(a) That the proposed District was initiated by the Petition filed with the City Clerk on
July 14, 2021, and the Petition satisfies the form and content requirements of Sections 22-
156, 22-157 and 22-158 of the TID Ordinance, the allegations in it are true, and it was
circulated and signed in conformity with all applicable requirements of the TID Ordinance;
(b) That as required by Section 22-161 of the TID Ordinance, the place, date and time
for a hearing on the Petition was scheduled for Wednesday, August 4, 2021, at 6:00 p.m.,
in the City Council Chambers, City Hall West, 300 LaPorte Avenue, Fort Collins, Colorado
and, at least thirty (30) days before the hearing, the notice of the hearing was duly published
on June 30, 2021 in the Fort Collins Coloradoan as evidenced by the “Affidavit of
Publication” attached as Exhibit “A” and incorporated herein by reference, duly mailed on
June 30, 2021 by the City Clerk to all the Lodging Businesses proposed to be included in
the District, and duly posted on the City’s website on June 30, 2021;
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(c) That appended to the Petition is the District’s proposed Initial Plan, a copy of which
is attached as Exhibit “B” and incorporated herein by reference, (the “District’s Initial
Plan”) which includes all the information required by Section 22-158 of the TID Ordinance
including the District’s proposed budget for the sixteen-month period from September 1,
2021, through December 31, 2022 (the “Budget”); and
(d) That the District’s Initial Plan and the establishment of the District are in the best
interest of the City.
Section 3. Establishment of District. The District is hereby declared a Tourism
Improvement District duly established and organized under the TID Ordinance as a body corporate
and politic, a “district” within the meaning of Article X, Section 20(2)(b) of the Colorado
Constitution, and a unit of local government distinct and separate from the City itself. The
District’s name shall be the “Fort Collins Tourism Improvement District.”
Section 4. District Boundaries. The boundaries of the proposed District shall be
coterminous with the City's boundaries as now existing and as hereafter modified through the
City’s annexation and de-annexation of real property.
Section 5. Included and Excluded Lodging Businesses. The Lodging Businesses to
be included in the District shall be any “lodging provider,” as this term is defined in Article IV,
Chapter 25 of the City Code (the “Lodging Tax Ordinance”), that is now or hereafter located within
the District’s boundaries and that is required under the Lodging Tax Ordinance to obtain from the
City a Lodging License and to pay the City’s Lodging Tax, but shall only include those lodging
providers that engage in the business of furnishing a room or other accommodation in a hotel,
motel, inn, bed and breakfast residence, apartment hotel, lodging house, motor hotel or similar
lodging establishment and that has three (3) or more Rooms at its location to be so furnished for a
period of less than thirty (30) consecutive days under any lease, rental, concession, permit, right
of access, license or other agreement. However, a Lodging Business to be included in the District
shall not include a “short term non-primary rental” or a “short term primary rental” as these terms
are defined in City Code Section 15-641. Future Lodging Businesses that qualify to be included
in the District under this Section 5 shall be automatically included in the District upon the City’s
issuance of a Lodging License to such Lodging Businesses. Conversely, any Lodging Business
included within the District which, by change of circumstances, no longer qualifies as a Lodging
Business to be included in the District under this Section 5, shall be automatically excluded from
the District.
Section 6. Powers of District. That except as otherwise provided or limited in this
Ordinance, the District shall have all the powers granted to Tourism Improvement Districts in the
TID Ordinance as needed to implement and operate under the District’s Initial Plan. Any
amendments to the District’s Initial Plan must first be approved by City Council by ordinance.
The District shall have only those powers authorized in this Ordinance.
Section 7. Appointment of Directors. The District’s Board shall have five (5)
Directors who are Electors of the District having these additional qualifications: (i) three (3)
Directors must be affiliated with a large full-service Lodging Business in the District; (ii) one (1)
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Director must be affiliated with a small limited-service Lodging Business in the District; and (iii)
one (1) Director must be affiliated with a boutique or specialty Lodging Business in the District.
The following Electors are appointed as the District’s initial Directors to serve its Board for the
staggered terms stated below:
(a) Daniel Benton, affiliated with the Fort Collins Hilton, a large full-service Lodging
Business, for a one (1) year term;
(b) Danielle Lowry, affiliated with the Hampton Inn, a small limited-service Lodging
Business, for a two (2) year term;
(c) Dragan Andrejic, affiliated with The Elizabeth, a large full-service Lodging
Business, for a two (2) year term;
(d) George Prine, affiliated with The Armstrong, a boutique/specialty Lodging
Business, for a three (3) year term; and
(e) Sandra Fredrickson, affiliated with the Fort Collins Marriott, a large full-service
Lodging Business, for a one (1) year term.
The terms of the initial Directors on the District’s Board shall be deemed to have commenced on
September 1, 2021, the effective date of the establishment of the District. Upon the expiration of
the initial terms, successor Directors shall be appointed by the City Council by resolution for terms
of three (3) years unless the appointee is being appointed to finish the term of a Director who has
left the Board for any reason before the expiration of their term and, in such case, the appointee
shall only be appointed to finish the term of the departed Director.
Section 8. Oath. Before serving on the District’s Board, each appointed Director of
the Board shall appear before an officer authorized to administer oaths and take an oath that they
will faithfully perform the duties of their office as required by law and will support the Constitution
of the United States, the Constitution of the State of Colorado, and laws made pursuant thereto.
The signed oath shall be kept in the records of the District’s secretary.
Section 9. Board Operations. The District’s Board shall be organized and operated
as provided in and in accordance with Section 22-164 and all other applicable provisions of the
TID Ordinance.
Section 10. Initial Plan and Budget. The Initial Plan and the District’s Budget are
hereby approved. This approval of the District’s Budget for the sixteen (16) month period from
September 1, 2021, through December 31, 2022, is hereby deemed to satisfy for the District’s 2022
fiscal year the requirements in Section 22-166 of the TID Ordinance that the District annually file
with the City Clerk and the City Council annually approve the District’s budget for the ensuing
fiscal year.
Section 11. Assessment and Collection of District Fee. Beginning September 1, 2021,
and continuing through December 31, 2021, the District may assess and collect a fee from the
Lodging Businesses within the District at the rate of three percent (3%) of a Lodging Business’s
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“lodging price” as this term is defined in Lodging Tax Ordinance (the “Fee”). However, the Fee
shall not be assessed and collected on those transactions that are exempt from the City’s Lodging
Tax as provided in Lodging Tax Ordinance. The revenue from the Fee shall only be used by the
District to fund those Tourism Services and Tourism Improvements authorized in the Initial Plan.
The District may use its own legal authority to collect the Fee or it may enter into an
intergovernmental agreement with the City under which the City would collect the Fee in a manner
similar to how the City collects its Lodging Tax under the Lodging Tax Ordinance. Under such
agreement, the City would be responsible for collecting the Fee (including any delinquencies,
penalties and interest) from each assessed Lodging Business within the District and the City would
remit such Fee revenues collected to the District no later than the end of the month following the
month the Fee revenues were collected by the City. The other specific details of such collection,
enforcement and disbursement process will be as outlined in the intergovernmental agreement
between the City and the District.
Section 12. Penalties and Interest. The District may charge penalties and interest for
any deficiency in a Lodging Business’s payment of the Fee in the same manner and at the same
rates as provided in Sections 25-265 and 25-266 of the Lodging Tax Ordinance. Therefore, if the
deficiency is due to the negligence of the Lodging Business, but without the intent to defraud, there
shall be added as a penalty ten (10) percent of the total amount of the deficiency. Interest in such
case shall be collected at the rate of one (1) percent per month on the amount of such deficiency
from the time the return was due from the Lodging Business required to file the return until paid,
which additional amount and interest shall become due and payable within twenty-one (21) days
after written notice of determination, assessment and demand for payment is issued. However, if
any part of the deficiency in the payment of the Fee is due to the intent by the Lodging Business to
evade the Fee, then there shall be added as a penalty fifty (50) percent of the total amount of the
deficiency, and in such case the whole amount of the Fee unpaid, including this addition and an
additional one (1) percent per month of interest on such amount shall be added from the date the
return was due until paid. This additional amount and interest shall become due and payable within
twenty-one (21) days after written notice of determination, assessment and demand for payment is
issued.
Section 13. Financial and Contractual Obligations. The District may enter into
binding multiple-fiscal year debt and other financial obligations only if the District’s Electors first
approve such debt or obligations in an election that complies with all applicable state law
requirements, including Article X, Section 20 of the Colorado Constitution. However, the District
may enter into contracts that provide for expenditures beyond the end of the District’s fiscal year
in which they are made if the enforcement of the financial obligations in such contracts are made
subject to annual appropriation by the District’s Board.
Section 14. District’s Term and Dissolution. The District shall have a term of ten (10)
years and four (4) months beginning on September 1, 2021, and ending on December 31, 2031.
The District shall dissolve on December 31, 2031, if not renewed by City Council. The District
may also be dissolved before December 31, 2031, as provide in Section 22-168 of the TID
Ordinance.
Section 15. Compliance with City Code. Except as expressly provide in this
Ordinance, the District shall be subject to and must comply with all applicable provisions of the
City Code including, without limitation, the TID Ordinance. In the event of any conflicting
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provisions in the City Code or this Ordinance and provisions in the Initial Plan or the District’s
future Annual Plans approved by the City Council, the City Code and this Ordinance shall control.
Section 16. Title Headings. The title headings on each Section hereof are for
convenience of reference only and shall not be deemed to expand or limit the scope of any Section.
Section 17. Recordation. This Ordinance shall be recorded in the records of the
Larimer County Clerk and Recorder.
Introduced, considered favorably on first reading, and ordered published this 20th day of
July, A.D. 2021, and to be presented for final passage on the 4th day of August, A.D. 2021.
______________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk
Passed and adopted on final reading on this 4th day of August, A.D. 2021.
______________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk
EXHIBIT A
EXHIBIT A
1
Fort Collins Tourism Improvement District Initial Plan
I.DISTRICT’S NAME
The proposed name of this tourism improvement district shall be the “Fort Collins Tourism Improvement
District” (District).
II.LEGAL AUTHORITY
The District is to be organized and established as a tourism improvement district (TID) as authorized in Article V
of Chapter 22 of the Code of the City of Fort Collins (TID Ordinance) to fund and provide certain tourism services
and improvements for the benefit of the lodging businesses included within the District.
III.PURPOSE OF THE DISTRICT
The District is being proposed by Visit Fort Collins (VFC) and certain Fort Collins lodging businesses and its
purpose is to operate as a TID charging fees to the lodging businesses included within the District in order to
fund and provide specific tourism services and improvements for the benefit of the feepayers’ lodging
businesses. These services and improvements will be primarily used to increase room night sales for those
lodging businesses.
IV.HISTORY AND PURPOSE OF TIDs
TIDs are an evolution of the traditional business improvement district. The first TID was formed in West
Hollywood, California in 1989. Since then, over 170 United States destinations have followed suit. This includes
many states that have adopted the California model. For example, Montana, South Dakota, Washington, Texas
and Louisiana have adopted TID laws, as well as municipalities in Colorado.
TIDs nation-wide collectively raise over $400 million annually for local destination marketing. With competitors
raising their budgets, and increasing rivalry for visitor dollars, it is important that Fort Collins lodging businesses
invest in stable, lodging-specific marketing programs.
TIDs utilize the efficiencies of private sector operation in the market-based promotion of tourism, and allow
lodging business owners to organize their efforts to increase room night sales. Participating Fort Collins lodging
business owners within the TIDs will pay a fee and those funds will be used to provide services and improvements
that increase room night sales.
There are many benefits to forming a TID that charges a fee to the lodging businesses within it:
•Fee revenues must be spent on services and improvements that provide a specific benefit only to the
feepayers;
•Fee revenues cannot be diverted to general government programs;
•They are customized to fit the needs of feepayers in each destination;
•They allow for a wide range of services;
•They are designed, created and governed by those who will pay the fee; and
•They provide a stable, long-term funding source for tourism promotion.
V.THE DISTRICT’S BOUNDARIES
The District’s boundaries shall be coterminous with the boundaries of the City of Fort Collins (City), the current
boundaries of which are shown on the map attached as EXHIBIT A. “Lodging business” shall mean any “lodging
provider,” as this term is defined in City Code Section 25-241, that is now or hereafter located within the
District’s boundaries and that is required to obtain from the City a lodging license and to pay the City’s lodging
tax as provided in Article IV, Chapter 25 of the City Code (Lodging Tax Ordinance), but shall only include those
lodging providers that engage in the business of furnishing a room or other accommodation in a hotel, motel,
EXHIBIT B
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inn, bed and breakfast residence, apartment hotel, lodging house, motor hotel or similar lodging establishment
and that has three (3) or more rooms at its location to be so furnished for a period of less than thirty (30)
consecutive days under any lease, rental, concession, permit, right of access, license or other agreement.
However, a “lodging business” shall not include a “short term non-primary rental” or a “short term primary
rental” as these terms are defined in City Code Section 15-641.
The District’s boundaries shall remain conterminous with the City’s boundaries. Therefore, future lodging
businesses annexed into the City after the establishment of the District shall automatically be included within
the District’s boundaries when the City’s Financial Officer issues a lodging license to that lodging business. The
District will initially consist of twenty-three (23) lodging businesses.
VI. DISTRICT’S INITIAL TERM
The District will have an initial term of ten (10) years and four (4) months beginning on September 1, 2021 and
ending on December 31, 2031. This will allow for the lodging businesses within the District to evaluate the
District’s effectiveness at the end of the initial term. If the District is deemed successful, the District’s Board can
then request the City Council to renew the District by ordinance to continue in existence after the initial term
expires. If the District is not considered to be successful and the District is not renewed by the City Council, the
District will be deemed dissolved at the end of the initial term.
VII. PUBLIC PARTICIPATION
VFC and the lodging businesses proposing the District have been conducting public outreach to the other
affected lodging businesses, including one on one meetings and group meetings with all lodging businesses
proposed to be included in the District and subject to the fee to provide them with consistent updates on the
process to establishment of the District. To ensure accessibility for such lodging businesses, a Dropbox will be
provided to easily submit their signed petitions, view this Initial Plan, and obtain other informational resources
regarding the District.
VIII. DISTRICT’S PROMOTIONAL PLAN
The specific tourism services and improvements that the District will fund have been developed and prioritized
by the lodging businesses proposing the establishment of the District. A summary for each of the District’s
proposed programs is included below:
• Sales, Marketing, & Communications: A sales, marketing, & communications program will promote assessed
lodging businesses as tourist, meeting, and event destinations. The sales, marketing, & communications
program will have a central theme of promoting the destination as a desirable place for overnight visits. The
program will have the goal of increasing overnight visitation and room night sales at assessed lodging
businesses, and may include the following activities, but are not limited to:
- Internet marketing efforts to increase awareness and optimize internet presence to drive overnight
visitation and room sales to assessed lodging businesses;
- Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to
drive overnight visitation and room sales to assessed lodging businesses;
- Building the Fort Collins branding to attract overnight visitation to the District;
- Potential attendance of trade shows to promote assessed lodging businesses;
- Bids and fees associated with special events, including but not limited to sporting and music events
and museum exhibits, to attract overnight visitors;
- A city-wide special-event transportation program, connecting assessed lodging businesses with
downtown and other attractions, to increase demand for room night sales;
- Sales blitzes for assessed lodging businesses;
- Familiarization tours of assessed lodging businesses;
- Preparation and production of collateral promotional materials such as brochures, flyers and maps
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featuring assessed lodging businesses;
- Attendance of professional industry conferences and affiliation events to promote assessed lodging
businesses;
- Lead generation activities designed to attract tourists and group events to assessed lodging
businesses;
- Increased efforts focused on stimulating visitation to the District during the off-peak tourist season;
- Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts
for assessed lodging businesses;
- Pursue hiring of additional sales staff to explore prospective marketing and sales development
opportunities;
- Education of hospitality staff on service and safety (related to alcohol and food) designed to create a
visitor experience that will bring repeat visits to assessed lodging businesses; and
- Education of lodging business management and the FCTID Board on marketing strategies best suited
to meet assessed lodging businesses’ needs.
• Destination Development: Destination development projects will be designed to improve the visitor
experience in an effort to increase overnight visitation at assessed lodging businesses. As the total number of
rooms sold and room prices increases over time, the amount of available funds for projects will increase.
Working collaboratively with the City, the District Board will develop specific funding criteria. The City and VFC
staff shall have equal input to make recommendations for final project approval. Policies and procedures
acceptable to both the District Board and VFC will be developed. Projects may include, but are not limited to:
- Comprehensive and integrated wayfinding signage system including signage to parking decks and lots;
- A city-wide special-event transportation program, connecting assessed lodging businesses with
downtown and other attractions, to increase demand for room night sales;
- Conducting research studies to determine the feasibility of building proposed meeting spaces;
- Art and cultural projects, to attract overnight visitors;
- Gateway enhancements, to attract overnight visitors;
- Enhancements to environmental experiences, which attract overnight visitors, that expose visitors to
the value of the vital ecosystems;
- Improvements to existing parks and sports facilities utilized by overnight visitors;
- Safe and fun entertainment complex for young teens and adults utilized by overnight visitors;
- Live music venue which attracts overnight visitors;
- Bids and fees associated with special events, including but not limited to sporting and music events
and museum exhibits, to attract overnight visitors;
- Infrastructure improvements that enhance Fort Collins’ competitive position to attract desirable
special events year around and attract overnight visitors; and
- Improvements to the City’s downtown parking deck that make the overnight visitor experience more
desirable.
• Administration and Operations: The administration and operations portion of the budget shall be utilized for
administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance,
legal, and accounting fees.
• Collection Fee: Under any intergovernmental agreement with the City of Fort Collins for it to collect the
District’s fees, the City shall be paid a fee equal to at least two percent (2%) of the amount of the fee collected
to cover its costs of collection and administration.
• Contingency / Reserve / Renewal: The budget includes a contingency line item to account for lower than
anticipated fees. If there are contingency funds collected, they may be held in a reserve fund or utilized for
other program, administration or renewal costs at the discretion of the District Board. Policies relating to
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contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the
reserve fund shall be set by the District Board. Contingency/reserve funds may be spent on District programs
or administrative and renewal costs in such proportions as determined by the District Board. The reserve fund
may be used for the costs of renewing the District.
In the first year of the District’s operations, it is proposed that the District would invest resources to undertake
the following five key programs and goals:
1. Support sales development opportunities, which may include hiring a salesperson, prospecting tools or
specific marketing activities/programs designed to bring business to Fort Collins;
2. Determine bid incentive funding levels and direction for enhanced sales activities; and
3. Explore additional advertising, promotional or public relations options and if appropriate, the course of
action for investing.
Bringing in revenue and contributions in addition to the District’s fees will increase impact and help the
organization to best leverage investments into Fort Collins. To that end, the District will work with VFC to
maintain current funding from the City of Fort Collins, as well as grants, donations, sponsorships, memberships,
fee-for-service projects, crowdsourcing and partnerships on top of the District’s fees, for destination sales,
marketing, communication, and destination development programs. The District Board, with City Council
approval as required in City Code Section 22-166, will determine the annual operating budget each year of the
District’s operations, based upon the priorities set out in this Initial Plan.
IX. DISTRICT’S FINANCIAL PLAN
FEE ASSESSMENT
The District will assess a fee that will be three percent (3%) of a lodging business’s “lodging price” as this term
is defined in City Code Section 25-241. However, the fee will not be collected on those transactions that are
exempt from the City’s lodging tax as provided in City Code Section 25 -243. Fee revenue will only be used to
fund destination sales, marketing, communication, and destination development programs, and related
administration.
The District proposes to collect the fee by entering into an intergovernmental agreement with the City under
which the City would collect the fee in a manner similar to how the City collects its lodging tax under its Lodging
Tax Ordinance. Under such agreement, the City would be responsible for collecting the fee (including any
delinquencies, penalties and interest) from each assessed lodging business within the District and the City would
remit such fees to the District no later than the end of the month following the month the fees were collected
by the City.
FINANCIAL AND CONTRACTUAL OBLIGATIONS
As allowed by law, the District may enter into multiple-fiscal year debt and other financial obligations only if the
District is authorized to do so by its initial plan, budget and its voters in a future election. The election must
comply with all applicable state requirements, including Article X, Section 20 of the Colorado Constitution (the
TABOR Amendment), and would limit the amount of multiple-fiscal year debt and other financial obligations that
may be issued by the District to no more than the amount that is approved by the District’s voters. There are no
anticipated multiple-fiscal year debt or other financial obligations anticipated to be incurred by the District.
However, the District intends to exercise the power authorized in City Code Section 22-155 to enter into
multiple-fiscal year debt or other financial obligations that are subject to annual appropriation by the District
Board.
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ESTIMATED COSTS & INITIAL 16-MONTH BUDGET
The following chart depicts the anticipated budget for the first sixteen months of the District’s operations.
Budget Category Sub-Category Line Detail September 2021 –
December 2021
January 2022 –
December 2022
41000 · FCTID Revenue $320,000.00 $800,000.00
Other Income $- $-
$320,000.00 $800,000.00
61000 · Employee Expense
61010 · Salaries/Wages
61012 · Wages $19,912.00 $85,218.00
62023 · Employee Parking $48.00 $360.00
Total 61010 · Salaries/Wages $19,960.00 $85,578.00
61020 · Payroll Related
61022 · Payroll Taxes $1,840.00 $6,960.00
61024 · Unemployment Taxes $180.00 $682.00
61026 · Workers Compensation $800.00 $2,000.00
61028 · Employee Insurance $4,800.00 $18,000.00
61031 · Employee Benefits $1,200.00 $6,000.00
Total 61020 · Payroll Related $8,820.00 $33,642.00
Total 61000 · Employee
Expense
$28,780.00 $119,220.00
62000 · Administrative and
General
Administrative
Sales, Marketing and
Communications, 60%
Destination Development15%
Administration and
Operations, 20%
Contingency/Reserve, 3%
City Collection Fee, 2%
September 2021 -December 2022 Budget
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62002 · Accounting $2,000.00 $6,000.00
62006 · Bank Charges $320.00 $1,200.00
62008 · Legal $10,000.00 $18,000.00
62025 · Supplies $320.00 $1,200.00
Total Administrative $12,640.00 $26,400.00
Office Rent Office Rent $1,140.00 $5,880.00
62070 · Telephone
62078 · Telephone - Cellular $1,920.00 $2,400.00
Total 62070 · Telephone $1,920.00 $2,400.00
62080 · Equipment/Computer
Lease
62081 · Office Equipment
Lease/Rental
$- $-
62084 · Office Furniture $2,000.00 $-
62085 · Computer Software
Purchase
$480.00 $600.00
62086 · Computer Equipment $3,200.00 $4,000.00
62087 · Maintenance $1,200.00 $1,500.00
Total 62080 ·
Equipment/Computer Lease
$6,880.00 $6,100.00
62099 · Miscellaneous $- $-
Total 62000 · Administrative
and General
$64,000.00 $160,000.00
Sales Expense
78015 · Trade Shows $4,840.00 $16,550.00
73007 · Lead Generation $15,920.00 $27,900.00
73000 · Sales Activities $3,456.00 $4,000.00
73000 · Bid Activities $11,200.00 $60,000.00
73000 · Local Champions Program $48,000.00 $60,000.00
73000 · Research $12,000.00 $60,000.00
78015 · Travel $4,000.00 $9,550.00
Total Sales Expense $99,416.00 $238,000.00
Marketing
62004 · Advertising
80000 · Digital $18,400.00 $78,000.00
62005 · Promotions $2,744.00 $-
62004 · Advertising $32,000.00 $44,000.00
Total 62004 · Advertising $53,144.00 $122,000.00
62003 · Web/Internet Expenses
80030 · Website Service $9,920.00 $28,584.00
Total 62003 · Web/Internet
Expenses
$9,920.00 $28,584.00
62028 · Graphics
80040 · Graphic Arts $9,600.00 $27,500.00
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Total 62028 · Graphics $9,600.00 $27,500.00
Public Relations
80070 · Agency Fees $3,600.00 $5,500.00
80080 · FAM Trips $4,800.00 $7,500.00
80090 · Media Events $4,800.00 $14,500.00
Total Public Relations $13,200.00 $27,500.00
International Marketing
81000 · Trade Shows $0.00 $3,000.00
81110 · Promotions $0.00 $-
Total International Marketing $0.00 $3,000.00
Total Marketing $79,144.00 $208,584.00
Visitor Services
DVIC Visitor Service Expense
62022 · Rent $2,400.00 $12,000.00
83020 · DVIC Supplies $240.00 $1,016.00
83010 · DVIC Volunteer
Enhancement
$600.00 $3,000.00
83017 · DVIC Staffing $3,120.00 $15,600.00
83015 · DVIC Janitorial $360.00 $1,800.00
Total DVIC Expense $6,720.00 $33,416.00
Total Visitor Services $6,720.00 $33,416.00
Total Sales, Marketing and
Communications
$192,000.00 $480,000.00
Destination Development
82015 · Initiatives $46,740.00 $116,400.00
82060 · Supplies $0.00 $-
82050 · CTA Program Fees $1,260.00 $3,600.00
82020 · Promotional Items $0.00 $-
Total Destination
Development
$48,000.00 $120,000.00
Reserves
62009 · Reserves $9,600.00 $24,000.00
Total Reserves $9,600.00 $24,000.00
City Collection Fee
7100 · City Collection Fee $6,400.00 $16,000.00
Total City Collection Fee $6,400.00 $16,000.00
Total Expense $320,000.00 $800,000.00
Net Ordinary Income ($320,000.00) $(800,000.00)
Net Income ($320,000.00) $(800,000.00)
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X. PENALTIES AND INTEREST
The penalties and interest charged for any deficiency in the payment of the District fee shall be the same as
provided in Sections 25-265 and 25-266 of the Lodging Tax Ordinance. Therefore, if the deficiency is due to
negligence, but without the intent to defraud, there shall be added as a penalty ten (10) percent of the total
amount of the deficiency. Interest in such case shall be collected at the rate of one (1) percent per month on the
amount of such deficiency from the time the return was due from the person required to file the return until
paid, which additional amount and interest shall become due and payable within twenty-one (21) days after
written notice of determination, fee and demand for payment is issued. However, if any part of the deficiency
in the payment of the lodging tax is due to the intent by the taxpayer to evade the tax, then there shall be added
as a penalty fifty (50) percent of the total amount of the deficiency, and in such case the whole amount of the
tax unpaid, including this addition and an additional one (1) percent per month of interest on such amount shall
be added from the date the return was due until paid. This additional amount and interest shall become due and
payable within twenty-one (21) days after written notice of determination, assessment and demand for payment
is issued.
XI. TIME AND MANNER FOR COLLECTING FEES
The District’s fee will be implemented beginning September 1, 2021 and will continue for ten (10) years and four
(4) months through December 31, 2031. If the City Council authorizes the City to do so under an
intergovernmental agreement with the District, the City will be responsible for collecting the fee (including any
delinquencies, penalties and interest) from each lodging business. In such event, lodging businesses shall remit
the fee each month to the City in substantially the same manner and at the same time as the lodging business is
required to remit the lodging tax to the City.
XII. DISTRICT GOVERNANCE
The TID Ordinance requires the District to a have a governing board consisting of an odd number of directors of
no fewer than five (5) directors and no more than nine (9) directors. All directors on the board must be qualified
electors of the District. The board is proposed to have five (5) directors who are electors of the District having
the following additional qualifications: (i) three (3) directors must be affiliated with a large, full-service lodging
business; (ii) one (1) director must be affiliated with a small, limited-service lodging businesses; (iii) one (1)
director must be affiliated with a boutique or specialty lodging business; and (iv) the remaining directors may be
affiliated with any type of lodging business. The following persons are recommended to be appointed as the
District’s initial directors on its board to serve the staggered terms indicated below as required by City Code
Section 22-164:
Board Member Affiliation Rationale for Inclusion on
Board
Initial Term:
1, 2, and 3 years
Daniel Benton Fort Collins Hilton Full-service 1 year
Danielle Lowry Hampton Inn Limited-service 2 years
Dragan Andrejic The Elizabeth Full-service 2 years
George Prine The Armstrong Boutique/Specialty 3 years
Sandra Fredrickson Fort Collins Marriott Full-service 1 year
The terms of the initial directors on the board shall be deemed to have commenced on September 1, 2021, the
effective date of the establishment of the District. Upon the expiration of the initial terms, successor directors
shall be appointed by the City Council by resolution for terms of three (3) years unless the appointee is being
appointed to finish the term of a director who has left the board for any reason before the expiration of their
term and, in such case, the appointee shall only be appointed to finish the term of the departed director.
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XIII. DISTRICT MANAGEMENT STRUCTURE
The District intends to enter into an agreement with VFC to deliver the programs and services contemplated
under this Initial Plan and to manage the District. VFC is a 501(c)(6) organization that supports the development
of Fort Collins.
XIV. CITY SERVICES
The District’s tourism services and improvements will be designed to supplement and complement existing City
services and will be in addition to City services that are currently provided in Fort Collins. The District services
and improvements are not intended to replace any existing City services or improvements.
XV. ANNUAL REVIEW
The TID Ordinance requires the District to file an annual operating plan and budget with the City on or before
September 30 of each year.
XVI. SURPLUS AND OTHER FUNDING
For the initial year of the operation of the District beginning September 1, 2021, there shall be no surplus to be
carried over from a previous year.
For the initial year of the operation of the District beginning September 1, 2021, there shall be no deficit revenues
to be carried over from a previous year.
For the initial year of the operation of the District beginning September 1, 2021, the amount of contributions to
be made from sources other than the District is approximately $350,000.
XVII. DISSOLUTION
The District shall dissolve on December 31, 2031, if not renewed by City Council. The District may also be
dissolved before December 31, 2031, as provide in City Code Section 22-168.
XVIII. CONCLUSION
With the submission of this Initial Plan, VFC and participating lodging businesses hereby request the City Council
of the City of Fort Collins to establish the District pursuant to the TID Ordinance.
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EXHIBIT A
Boundary Map
EXHIBIT B